Question

O Resources have higher costs in the short run than in the long run. . In the short run, at least one resource is foed in the long run, all resources are variable There are diminishing returns in the short run, but increasing returns in the long run. In the long run all resources are variable in the short run all resources are fred rrect Question 7 0/2 pts Economies of scale may arise from which of the following activities? Government economic subsidies protect firms from competition to avoid losses. Doubing promotional expenses to expand salts more than proportionate Havingsartspace can not more than proportionate Question 8 2/2 pts If a firm is a price taker, then the demand curve for a single firm is perfectly tastic
#7

#13-15

#16

#22

#26

please

Answer 1

As per HOMEWORKLIB POLICY and guideline, the first-four MCQs are answered below:

#7)

Answer: 2^nd option

Economies of scale is a cost benefit – expanding the business reduces its average cost.

This thing happens here as the expenses are doubled, the sale increases more than proportionately. Therefore, the increasing sale unit reduces the average cost.

#13)

Answer: 1^st option

This type of monopoly arises if there is very high economies of scale. The firm has immense advantage of increasing production or supply, since it enjoys a huge reduction in costs (or getting cost benefits).

#14)

Answer: 3^rd option

The demand curve is slopped downward, indicating a reduction in price increases quantity demanded. Although the firm is a monopolist, it cannot charge whatever it like to charge, because maintaining the market demanded is primary.

#15)

Answer: downward sloping; flat

A monopoly demand curve is downward slopped, while a perfectly competitive demand curve is flat. This is so because a monopoly firm is price setter but a perfectly competitive firm is price taker.